Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 27, 2016

Article Excerpt

HEWLETT-PACKARD ENTERPRISE CO., $18.25, New York symbol HPE, sells computing services and products, such as servers and analytics software, to businesses and governments. The stock jumped over 15% this week after the company announced that it would spin off its Enterprise Services business and merge it with Computer Sciences Corp. (New York symbol CSC). The Enterprise Services operations, which supply 36% of HP Enterprise’s total revenue, help corporate clients manage their data centres and computer networks. Under the terms of the deal, HP Enterprise shareholders will receive stock in the new firm. As a group, they will own about 50%. They will also receive a special dividend totaling $1.5 billion. Investors will not be liable for capital-gains taxes until they sell their new shares. If shareholders and regulators approve, the companies expect to complete the merger by March 31, 2017. Following the spinoff, HP Enterprise will focus on its faster-growing server and software businesses. That will help it profit as more of its…